TABLE OF CONTENTS
Making your property 'Rental Ready'
@realty prides itself on ensuring that tenants leave properties as they found them, if not in a better condition! To ensure that tenants leave the property in good condition, property owners must ensure that they have the property ‘Rental Ready’.
Some things to consider;
Lessor Obligations
Tenancy legislation throughout Australia and New Zealand outlines general obligations for the lessor to consider. They cover things like:
The lessor must:
- Must maintain the premises in a way that it remains fit for the tenant to live in
- Must maintain the premises and inclusions in good repair
- Must ensure any law dealing with issues about the health or safety of persons using or entering the premises is complied with
- If the premises includes a common area, this area must be kept clean.
It is important for lessors to understand that if they supply an inclusion such as a dishwasher or air-conditioner in the property when a tenancy commences, they must maintain it throughout the entire tenancy.
A COMMON MISCONCEPTION
Some lessors believe if the appliance breaks down they don't have to fix it. However, in this instance the lessor must repair or replace the item or they may negotiate a rent decrease due to the loss of an amenity.
Minimum Housing Standards
Each state has prescribed Minimum Housing Standards (MHS) or other standards that must be adhered to prior to advertising a property for rent. These standards must also continue to be followed during a tenancy. The landlord is in breach of their obligations if the property does not meet MHS. It is also an offence to let a property that does not meet MHS.
Please refer to the Minimum Housing Standards for your state, using the below links:
QLD: https://www.rta.qld.gov.au/during-a-tenancy/minimum-housing-standards
NSW: https://www.nsw.gov.au/housing-and-construction/rules/minimum-standards-for-rental-properties
NT: There are no specific minimum standards which must be met. However, it is the landlord’s responsibility to ensure that the property is clean and habitable and meets all health and safety requirements. It is also the landlord’s responsibility to maintain the property during the period of a tenancy so that it is in a reasonable state or repair allowing for wear and tear.
SA: Changes to the Residential Tenancies Act 1995 have been passed by the Parliament and are set to come into effect as soon as supporting regulations are developed. Under the new law, landlords will need to ensure premises comply with minimum housing standards (prescribed under the Housing Improvement Act 2016) ready for occupation
ACT: There are no set minimum housing standards, however, there are still standards that must be complied with (e.g. reasonable state of repair, reasonably secure, minimum energy efficiency standard for ceiling insulation.)
TAS: https://www.cbos.tas.gov.au/topics/housing/renting/beginning-tenancy/minimum-standards
WA: There are no set minimum housing standards, however, there are still standards that must be complied with (e.g. reasonable state of cleanliness & repair, building standards, health standards, security standards & safety standards.)
PLEASE NOTE: The above is general information & is subject to change. Please always refer to your State legislation for confirmation on requirements.
Insurance Cover
As property managers we cannot offer you any advice when it comes to insurance but we can let you know that you need to have the following insurance covers on your property
- Building
- Contents (this covers items like blinds, carpets, internal inclusions)
- Public Liability (a minimum of $10,000,000 cover is required
- Landlords
A number of building insurers will offer a landlords insurance policy as part of the overall premium. If you have this cover in place please check things like what excesses are payable in different instances and make sure you are happy with the level of cover this type of policy offers. We would strongly recommend a Landlord Insurance specific policy is taken out as additional peace of mind. You will find a brochure included in this document of an insurer who we see used in the market place quite regularly.
Smoke Alarms
For a number of years there has been a legal requirement for owners of rental properties to have the smoke alarms tested prior to a tenants lease commencing or on a regular basis. To minimise the risk against you as the property owner our company policy is that all properties that are managed are checked by a professional company. For a small annual fee your smoke alarms can be tested as many times as required.
Please check your specific State requirements & legislation relating to Smoke Alarm compliance in residential tenancy agreements.
Corded Window Furnishings
Australian homes often feature blinds, curtains and other window coverings that have cords and using the cords, a person can raise, lower, open, or close the blinds or curtains.
Blind and curtain cords can present a strangulation hazard to children, as they may become entangled in them while trying to use, play with or play around window coverings. Even with raised coverings, children can climb onto window sills or furniture and access the cords. Cords can also strangle infants sleeping or playing in cots placed near windows where cords are within reach or hanging into cots.
In recent years, the Australian Competition & Consumer Commission ("ACCC") recognised the major hazard of risk of strangulation of young children with loop cord systems. As a result, Mandatory Standards known as The Trade Practices (Consumer Product Safety Standard - Corded Internal Window Coverings) Regulations 2010 ("The Trade Practices Mandatory Safety Standards") now regulate the design, construction, installation and labelling of corded window furnishings.
From 1 July 2011 all premises (residential and commercial) which are leased/rented by their owners must comply with The Trade Practices Mandatory Safety Standards in relation to any corded window covering including (but not limited to) Vertical, Venetian, Holland and Roman Blinds, and Curtains (including pencil pleat "ready mades" and pencil pleat tape) and any fitting containing cords, such as Curtain Rods and Tracks.
Pool Safety
If your property includes a pool, whether unique to your particular property or shared with other properties, you must ensure that there is a current Pool Safety Certificate available to give to the tenant when they sign their lease.
If the pool associated with your property is a shared pool (e.g. in a body corporate environment) you will need to ask your Body Corporate manager for a copy of the current certificate.
Keys for the property
Residential tenancy laws state that an owner of a rental property should provide a full set of keys (this includes swipe cards, passcodes, remotes etc) for the property as well as an ‘entrance’ set of keys for each tenant.
Our company policy is that property owners provide our office with a full set of keys to hold at the office. The reason for this is so that we can enter the property in an emergency situation or to conduct regular inspections.
You should always have the tenant collecting keys on the move in date, sign a key sheet showing exactly what keys & remotes were provided & how many. This is important to refer back to when the tenant moves out so you can ensure all keys are remotes are returned. The tenant is not considered to have handed over vacant possession until all access keys have been returned to the agent.
Body Corporate / Strata Information
It is vital that you provide our office with all contact details of your body corporate AND a copy of the body corporate by-laws before your property is advertised.
It is important for prospective tenants to understand what is expected of them under the by-laws before they apply for the property
Storing goods at the property
We are often asked by property owners if they can store personal belongings at the property while it is rented out.
Our recommendation is that as a property owner you should always be able to provide the ‘entire property’ to the tenant to use.
Storing goods in a secured area of the property can pose delays in connecting and disconnecting electricity for the resident. In some instances we have seen where electricity providers don’t connect power if this happens.
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